Is selling a home “off-market” right for you?
Listing a home off-market means you are working with a Realtor who has your best interest in mind, but you do not want your home listed on public websites or hold a public open house, have constant showings, etc. Rather, you would prefer your agent to spread the word to Realtors they work closely with and trust to bring well qualified buyers. Every homeowner has their own reasoning for the sale process they choose, but if you are looking for a more private, exclusive sale, off-market could be the right choice.
What are the benefits of off-market sales?
When selling your home off-market, your listing will be more exclusive and private, so you are not disturbed as much for constant showings. We still encourage our sellers to prep their home for sale with staging and styling, but if that is not something you can do, selling off-market can alleviate that stress as it might eliminate the need for professional photos. We also share a premium number as the list price with other agents since you will be missing out on the mass public exposure and potential bidding wars.
Are there any cons to selling off market?
Missing out on mass, public exposure can sometimes leave money on the table. In today’s market, where many homes are receiving multiple bids, driving up their value, an off-market sale could miss out on that bidding process. While we spread the word to multiple trusted partners, there is a chance of a smaller bidding war, but without mass exposure, we can’t guarantee that you aren’t leaving money on the table. However, sometimes, for an easy, quieter transaction, where you don’t have to stress about prepping your home as much, that’s okay and worth it, for you.
Does the paperwork differ if selling in-house or off-market?
You will still sign an exclusive listing contract stating that we are representing you on the sale of your home and property disclosures, along with a “withhold from MLS” form that states just that – you do not wish to list your home on the multiple listing service (MLS) that would then push it to public websites like Zillow, Realtor.com, etc. We would still feature your home on our website, whether its during the time of the sale or after, all of that will depend on your level of privacy and the condition of the house. Sometimes we will show interior photos, other times just one exterior photo.
Off-market means your home is for sale, but it is not listed on MLS, the public database, and does not filter to Zillow and Realtor.com and other real estate websites. This might be referred to as off-market, or pocket listing, but shouldn’t be confused with a FSBO (For Sale By Owner). You also don’t want to confuse it with Zillow listings where it says Off Market. There, it literally means this home is off the market – it is not for sale. Our off-market listings are just private sales.
Is the offer profess different?
Offers will come in just the same as if your home was publicly listed. We will receive a binder or contract, and it could be a cash offer or with a mortgage, and buyers may want to do an inspection and would receive a mortgage with a bank appraisal. You will need to contact an attorney as well.
After we sell your home off market, we put it on MLS as a “comp-only sale,” with pictures of your home (sometimes just an exterior), sale price and sale date, and that sale does show up on Zillow once you have closed.
What is a prospecting letter for a buyer?
We have also run into numerous instances where we have a buyer looking to purchase a home and can’t find anything on the public market. As a result, we do direct to home seller prospecting for that buyer. If all goes well and we get a match (and we submit an offer, go through inspections, etc) our buyer (with our help) basically purchases the home directly from the homeowner. We love matchmaking like this!
Here is what is required of an off market listing:
- Off market listings still require a Realtor (whereas FSBO’s do not). You will still have to pay commission, but that can be negotiated since your Realtor may not be spending as much time and money on marketing.
- If you’re interested in listing your home off market, you will still need to fill out listing paperwork and disclosures. This protects you and your Realtor, and disclosures will help once you receive offers.
- Our team will want to take professional photos and floor plans, which we can send to our database of Realtors and post on social media. However there will be no “for sale” sign on your front lawn, as there is little marketing we can do. We may list your home on our website if that is ok with you.
- You will have to sign a “withhold from MLS” form, which states you acknowledge your home will not be listed on the MLS and all real estate websites via IDX. Some of the points listed on this form include:
- a. The Listed Property will not be exposed to the widest possible number of potential buyers/lessees who are represented by the over 17,000 agents who participate in the MLS.
- b. By withholding the Listing from the MLS I/we may not receive the highest possible selling/lease price and the most favorable offer to purchase the Property.
- c. Because the Listing has been initially withheld from the MLS, it cannot be placed on the MLS until thirty (30) days after the date of the Listing Agreement. If the Listing is placed on the MLS after the thirty day period, the Listing’s time on market will be calculated based on the date of the Listing Agreement, not the date that the Listing is filed with the MLS.
- Listing a home off market really just affects how we can market your home, but offers will come in just the same as if your home was publicly listed, by another licensed Realtor, and the process is very similar to if your home was publicly listed. We will receive a binder or contract, and it could be a cash offer or with a mortgage, buyers may want to do an inspection, there may be a mortgage contingency, and a final-walkthrough, and everything in between. You will need to contact an attorney as well once you have an offer.
- After we sell your home off market, we put it on MLS as a “comp-only sale,” with pictures of your home, sale price and sale date, and that does show up on Zillow. It would be known as a private sale on the public tax records. According to SmartMLS, a “comp-only listing” means “a comp only listing is defined as a sale that is procured BEFORE the listing is/was entered in Connect. It is entered after the fact so the property can be used as a comp by other MLS users.”
Recently we sold 33 Vintage Road in Trumbull off market for $875,000! Sarah Pritchard, team leader and luxury properties specialist of the Pritchard Homes Team, mailed letters on behalf of her clients who were looking to buy a home in this neighborhood. While this home didn’t work out for her clients, the owners had been considering moving out of state and were seriously considering selling their home. Our letter came at the perfect time!
After a couple of meetings, discussions, walk throughs, and a home valuation and market analysis, the owners were open to selling their home off market, for a couple of reasons – they were not ready to sell and close immediately and weren’t interested in a rent back; the holidays were approaching, and showing or holding open houses during the holidays wasn’t ideal; they weren’t planning on making any upgrades, painting, or fixing anything major; plus knowing that it’s a private sale just appealed to them!
After a price was set and professional photos were taken, Sarah quickly got to work networking with other Trumbull Realtors, her sphere of influence, and potential buyers our team had who were looking for a home like this one. There were private showings and a lot of interest – after all, it was a picture-perfect home in a desirable Trumbull neighborhood! Our first offer didn’t take long to come in – a local Trumbull Realtor had buyers who were interested and provided an offer at our asking price and a longer closing date, so our clients had plenty of time to pack up and move. The process went smoothly after that! Documents were signed, inspections were booked, and our clients were one step closer to closing for a fabulous price of $875,000!
We had a similar experience selling 36 Firehouse Road in Trumbull last Spring, and that sold for $779,000!
Pros to selling your home off market
- Privacy – The process is more discreet and less intrusive. Your home will not be publicly listed, so Zillow snoopers or your neighbors won’t know your home is listed, unless you tell them! We find this is the most appealing part to sellers – the privacy aspect.
- Fewer Updates Needed Before Going Live – There is less need to stage, repaint, do repairs to appeal to a wide audience of buyers. We do recommend our sellers clean up their home as best they can
- Days on Market Will Not Be Listed – If your home were publicly listed, and sits on the market, there will be a ticker called Days on Market where the public can see how many days your home has been listed. If your home is not on the public market, no one will know how many days your home is listed.
- Serious Buyers – Showings will still happen, but there will be fewer of them, because there will just be fewer eyes on your home. We cannot host open houses, but we can privately show your home to prospective buyers and their agents. Some sellers like this aspect, as they can bypass a whole weekend of showings and random people tromping into your open house. It narrows the playing field…which can be a good or bad thing.
- Networking – We have a targeted approach to potential buyers from our wide network. Our goal is still the same – selling your home for top dollar in the quickest amount of time
Cons to selling your home off market
- Limited Exposure – Since your home won’t be listed on MLS (or anywhere – online or in print), there will be fewer eyes on your home, which means fewer potential buyers, which could mean fewer offers
- Fewer Potential Offers – Fewer offers and less buyer competition means offers may come in at or below your asking price. While we will still price your home competitively, knowing that since your home will not hit the public market, we expect offers to come in at asking or very close to it. We can also negotiate. We always tell our sellers – it only takes one offer!
- Feedback and Suggestions – There will be feedback from showings and potential buyers, but you really don’t need to do anything with this feedback. Whereas if you were listed publicly and everyone said your home was overpriced, or your home needed power washing, we would strongly recommend that (if we haven’t already!)
- Local Market Strategy – It may take longer to sell than if your home was listed on the public market. However, we haven’t had that issue with our two off market listings! The local market and inventory really plays a part here. Selling off market is best in a low inventory market (or a sellers market)
We’ve also helped buyers purchase homes off market, so we know both sides of the coin! Buyers like off market homes because of exclusivity, they don’t have to compete with other buyers, and it might seem like they got a deal. So there are also benefits for buyers!
We were the #1 real estate team in Trumbull in 2024! We know the Trumbull market, other top Realtors in town, what makes each neighborhood unique and desirable, the hot spots. Not only that, but we can share with our entire office of Realtors – hundreds more Realtors. Our sphere of influence helped us successfully sell these two homes off market. If you’re interested in seeing if selling your home off market will benefit you, we would love to chat and share more success stories. Feel free to contact Sarah Pritchard anytime at 203.414.5571 or sarah@pritchardhomesteam.com
Whether you’re looking to sell ON or OFF market, we’re here to position your home in the best light, that will showcase all the details and attributes that make your home special and secure a buyer for top dollar in whatever market lies ahead. Call us for a home valuation so we can figure out what most lucrative selling (or buying) situation is for you.
Additionally, if you’re curious what your home is worth in the current market, check your home’s value at our home valuation website. You will receive an instant, free home valuation. Yes, free! There is no obligation and no fee, but we may follow up with you to see if we can help in any way!
